Business, Assistance, Housing Loans, Programs

Headwaters Regional Finance Corporation


The mission of the HRFC is to be a catalyst for business and economic development in the Headwaters Region.  The HRFC accomplishes its mission by providing “gap” financing to new and expanding businesses, and supporting and coordinating projects with private lenders and other economic development assistance providers.

Headwaters Regional Finance Corporation (HRFC) is a subsidiary of HRDC with responsibilities of administering revolving loan funds for business development.  The HRFC’s primary fund (EDA RLF) has been in existence since 1979. This fund was capitalized through a series of grants from the Federal Economic Development Administration (EDA) and currently operates with an asset base of $3.6 million. 

In addition, the HRFC administers a newly created Emerging Entrepreneur Fund capitalized by Minnesota Department of Employment and Economic Development through special funding by the U.S. Department of the Treasury. A nine member board of directors oversees the HRFC while a loan committee reviews applications brought forth by staff.

Financing Focus

  • Support projects that will increase wealth and prosperity of employers, employees and communities through job creation and/or wage growth.
  • Encourage investment in state-of-the-art technology and innovative ideas.
  • Support projects that enhance ‘quality of place’ in our communities, which will help to
    retain and attract a quality workforce.

General Policies

  • A financing ‘gap’ must be identified.
  • Loans amounts from $10,000 – $350,000
  • All loans must be secured with collateral and personal guarantees.
  • Interest rates are typical below market rate.
  • Generally, borrowers will be required to show a 10% equity contribution.

Eligible Activities/Use of Funds

  1.  Purchases of equipment and other fixed assets
  2. Working capital needs
  3. Start-up expenses for new ventures
  4. Purchase of real estate for business expansion
  5. Construction/ remodeling of business facility
  6. Product development expenses for existing businesses


development, economy, transportation, planning, natural resources

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